Unless you plan a trip to Toyko, you probably arenâ€™t concerned about the exchange rate of the yen. Is a Japanese car on the list of your possible purchases? Then you should be concerned. Those prices will go up.
Toyota will raise its prices in the U.S. and Europe to cope with the strong yen, says The Nikkei [sub]. But raising prices is like sex between porcupines: You need to do it very carefully. Hyundai is just waiting for such a move.
According to The Nikkei, Toyota â€świll have to get the timing and size of the price hikes right to avoid a plunge in demand for its cars.â€ť Easier said than done. Toyotaâ€™s sales are already a bit iffy, the SUA inquisition has left its marks that take years to heal.
But Toyota ” cannot just sit idly by while the yen keeps rising. We will raise the sticker prices of our cars,” Toyota Senior Managing Director Takahiko Ijichi told The Nikkei. They will also focus more on higher-margin models.
Higher prices in the U.S. and Europe? That will cost them.